Which of the following expenses has NO effect on the cash flow of a firm?
A) salaries expense
B) interest expense
C) depreciation expense
D) cost of goods sold

Name: Which of the following expenses has NO effect on the cash flow of a firm? A) salaries expense B) interest expense C) depreciation expense D) cost of goods sold
Brand: Quizplus
Rating: 4.7 (35 reviews)

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense and does not involve any outflow of cash. Therefore, it has no effect on the cash flow of a firm.

Which of the Following Expenses Has NO Effect on the Cash